Lahore, The First Punjab Modaraba, managed by Punjab Modaraba Services (Private) Limited, presented its 31st Audited Financial Statements for the fiscal year ended December 31, 2023. Despite facing significant economic challenges, the company demonstrated resilience by focusing on sustainable growth and corporate governance, though it reported a net loss amid higher finance costs and adverse economic conditions.
The year 2023 proved to be arduous for the Pakistani economy, marred by high inflation, geopolitical tensions, and devastating floods. First Punjab Modaraba, however, backed by strong financial support from The Bank of Punjab, managed to navigate through these difficulties. According to information available from the Pakistan Stock Exchange (PSX), the company focused on quality clients and efficient asset management to mitigate the impacts.
During the fiscal year, First Punjab Modaraba recorded a gross revenue of Rs. 331.319 million, up 56.65% from the previous year. However, finance costs soared to Rs. 358.390 million due to increased KIBOR rates and additional financing, leading to a net loss of Rs. 111.361 million after taxes. This financial situation was slightly mitigated by a subordinated fund infusion of Rs. 500 million from The Bank of Punjab, aimed at stabilizing the company’s equity base.
The Board of Directors, under the Modaraba Ordinance and the Companies Act, remained committed to strict compliance with regulatory frameworks and diligent oversight of the management’s performance. The governance structure included active participation from non-executive and independent directors, ensuring that strategic decisions were well-informed and documented.
Looking ahead, the management of First Punjab Modaraba is cautiously optimistic. With a strategic plan aimed at navigating the current economic pressures, the company focuses on recovery from its classified portfolio and investing in income-generating projects. The operational strategy is expected to leverage the lower discount rates and improve financial performance in the upcoming fiscal year.
The company has also maintained a strong commitment to corporate governance and ethical business practices, adhering to the standards set out in the Listed Companies (Code of Corporate Governance) Regulations, 2019. These efforts are part of a broader initiative to ensure sustainability and responsibility in its operations, aligning with the interests of stakeholders and the broader community.
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